Infotech

Bitcoin crosses $ 30,000 mark for the first time



Posted on Jan 2, 2021, 5:59 PMUpdated Jan 2, 2021, 7:06 PM

How far will bitcoin go in 2021? The most famous cryptocurrency crossed the symbolic $ 30,000 mark this Saturday for the first time. In December, the currency gained 50%, and over one year, the value of a bitcoin has climbed more than 300%. A meteoric rally for the controversial digital asset, which rebounded strongly after a severe crash in March that saw it lose 25% amid the coronavirus pandemic.

“The appetite for risk” which is reflected in the purchases of this cryptocurrency “remains indomitable”, estimated in a note the independent analyst based in Germany Timo Emden, director of Emden Research. The currency “will likely be on the road to $ 50,000 in the first quarter of 2021,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, which touts itself as the world’s largest cryptocurrency lender.

Institutionalization

The recent surge started at the end of October with the launch of a cryptocurrency buying, selling and payment service by the online payments giant Paypal. In addition to this service intended for individuals, investment funds are increasingly interested in this asset in sudden price movements, although they have long been wary of it.

“Many private investors do not yet dare to approach and remain on the sidelines,” recalls Timo Enden. However, analysts from the US bank JPMorgan recently estimated that “the use of bitcoin by traditional investors is only just beginning”: they compare digital and decentralized currency to gold.

Volatile

For many followers of bitcoin, the latter draws its appeal from its decentralization: created by a network itself invented by anonymous people in 2008, it therefore does not depend on any institution. Not being backed by any asset or the economy of any country, the price of bitcoin has however observed dizzying variations.

So in 2017, it started the year at less than $ 1,000, then saw its price soar over the months before a real surge between mid-November and mid-December, when prices had quadrupled in less than a year. month. After peaking near $ 20,000 on December 18, 2017, prices then melted throughout 2018, ending that year at just over $ 3,000.

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